A couple of honest facts about my recent performance to show I am not immune from the markets:
Overall realised profits to date for May: $400 3 month capital growth: -10.4% 8/8 trades today was very much the exception not the rule
Trading profits have helped to offset losses in other areas. What I find is that in good times the profits can be astounding. However, during tough periods, like now, trading profits can help offset reductions in the value of long term strategic investments in the portfolio.
There are strong arguments to exit all positions when the trend changes however sometimes this is impossible due to liquidity issues.
The answer would be to link position size to a stock's liquidity as well as the size of your overall capital pool.
The other area I need to get involved in is short selling although I have a fundamental problem with people selling something they don't own. However I can't change the market rules so I need to adapt to them.
